IEA warns China faces dire future without strong action on coal pollution

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IEA warns China faces dire future without strong action on coal pollution
http://www.theaustralian.news.com.au/business/story/0,28124,25364537-5017996,00.html

Shai Oster April 21, 2009 THE WALL STREET JOURNAL

THE International Energy Agency said China must clean up its coal sector or face dire environmental consequences for itself and the world.

The Paris-based body outlined steps to mitigate pollution in China,including tougher enforcement of regulations, more foreign investmentin energy, and putting a price on carbon emissions.

“Without strong action, CO2 emissions could rise in an unsustainableway,” IEA executive director Nobuo Tanaka said at a launch of a reporton clean coal technology in China.

The report was done in cooperation with the Chinese Government,reflecting growing awareness in Beijing of the hazards posed by currentenergy trends.

The IEA’s list of recommendations included calls for greateropenness of China’s domestic energy sector to outside investment, and acontinued pursuit of new technologies to capture carbon emissions frompower plants and sequester them in the ground or elsewhere.

China has said it is making cleaning up its coal-fired power sectora priority and has implemented reforms, such as shutting hundreds ofsmall and inefficient power plants, and instituting nationalenergy-efficiency standards.

But Mr Tanaka also suggested that China would have to eventuallycharge for carbon emissions - a move Beijing has vigorously resistedout of fears it could stymie economic growth. Making companies pay forhow much carbon they produce could be a part of setting national limitson emissions.

“Ultimately, a market in which emissions of carbon are priced will emerge,” Mr Tanaka said.

“I see that a debate is taking place in China about how quickly China should move in that direction.”

Developed countries participating in the United Nations’ KyotoProtocol on global warming have already accepted national caps ongreenhouse-gas emissions, requiring industries that pollute more to buyso-called carbon credits.

China has no national limits on carbon emissions. It has earnedbillions of dollars through the Kyoto plan because companies indeveloped countries can invest in pollution-reduction programs in Chinain exchange for credits to apply to their emissions back home.

China has surpassed the US as the world’s leading source ofglobal-warming greenhouse gases. That status is the byproduct ofroaring economic growth that has lifted millions from poverty, butrelied heavily on coal as the primary source of energy.

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